Reserve Bank governor Alan Bollard is again warning property investors that they risk falling prices and higher interest rates.
Tuesday, September 9th 2003, 6:47PM
by The Landlord
House prices have risen more than 14 per cent on average in the past year.
"When property prices really skyrocket, real property-price deflation often follows soon after," he told the Property Council of New Zealand yesterday.
Rising house prices and, by inference, increasing rentals were "by no means a certainty", he said. People were borrowing more compared with their incomes and were lining up to invest in property.
"I'm concerned . . . that this could end in disappointment, especially for unsophisticated investors rushing to get on the housing investment bandwagon."
